Earning extra to pay off my debts

melou

I hope this is in the right place, if not please feel free to move.

Last year I took a consultancy role, which although part time was a significant salary increase and also left me with time to pursue other interests. I left my previous company on excellent terms and with their full support. Since I left, my former employer has periodically (4 times in 6 months) offered me freelance work which I have accepted because all money is welcome in the DFW household and working part time in my main job means I could fit it in.

Yesterday I billed them for 3 months work (I had back to back assignments so billed a total rather than collecting on individual assignments) and then had a bit of a panic over paying tax. So I called the IR this morning who registered me as self employed for additional earnings and for this tax year they have sent out a small earners exception certificate as this tax year I will not meet the threshold (although if things continue next year I may be very close to it).

My question is, as I am self employed am I able to offset anything against this (eg. travel, internet connection) and if so what?

As I said, I am not sure if this is the right place to post but I figured that other DFW's may have additional earnings to their main salary and might be able to help.

TIA

Melou

melou

I think I may be best asking this on the tax board (that will teach me to read the board list properly!) so I will re-post over there.

thank you

OberonSH

Certain things are allowed. Personally I'm self employed in my main role, so it didn't affect me much. You'd really need to speak to the Inland Revenue, or check out their website. A good accountant will be able to advise, but when you're a very small guy like us, the cost might outweight the savings.

I'd advocate keeping records now, as if it does take you over you'll need to back track a bit. Keep your invoices and receipts, and maybe start an accounts spreadsheet. That way ifyou get an accountant to check them over once a year (as I do, to make sure I don;t miss anything) it's all down.

Seaxwyn

HI Melou

You can set genuinely work-related expenses against tax - eg stationery, travel, subscriptions to necessary journals, phone calls

No need to pay for an accountant, make an appointment at your local tax office. Mine have been quite helpful in the past.

If you are self-employed you should also be paying self-employed National Insurance contributions (only £8/month)

Good luck with it